5-Sep-2013 3:25 PM

Precision Air records USD19m loss in FY2013, 737s drive maintenance costs up 98%

Precision Air recorded a loss of TZS30.8 billion (USD19.1 million) for the year ended 31-Mar-2013, down from a profit of TZS1.8 billion (USD1.1 million) in FY2011/12, according to The Citizen. Passenger traffic for FY2012/13 increased 8.5% year-on-year to 895,650. The loss was attributed to a 24% increase in "direct expenditures" to TZS145 billion (USD89.9 million), driven by fuel, equipment and maintenance costs, and an 18.6% increase in "indirect expenditure" to TZS42 billion (USD26 million), including an 8% increase in staff-related costs. Aircraft maintenance costs increased 98.3% to TZS23.6 billion (USD14.6 million), due mainly to the high cost of maintaining the airline's three Boeing 737s. The airline stated, "Considering the performance, the group recognised the need to execute a turnaround. Towards that end, the board has made changes in the top management which has developed a new 5 year strategic plan already approved by the board."